Optiva Inc (OPT) AI Stock Analysis

• Market Cap: C$4.16M
• Dividend Yield: N/A
• Average Volume (3M): 6.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.27
• Revenue Growth: 4.13%
• EPS Growth: -5.54%
• Country: CA
• Employees: 413
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Infrastructure
• EPS (TTM): -0.60
• Shares Outstanding: 6,212,992
• 10 Day Avg. Volume: 8,165
• 30 Day Avg. Volume: 6,355
• PEG Ratio: 0.15
• Price to Book (P/B): -0.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: C$0.50 ▼(-25.37%Downside)

Optiva Inc's overall stock score is primarily impacted by its weak financial performance and valuation, reflecting significant challenges in profitability and financial health. While there are positive signals from recent corporate events, they are insufficient to offset the broader financial and technical weaknesses.

Optiva Inc Business Overview & Revenue Model

Company Description

Optiva Inc. provides cloud-native monetization and revenue management software to communication service providers (CSP) in Europe, the Middle East, Africa, North America, Latin America, the Caribbean, Asia, and the Pacific Rim. The company's monetization products enable real-time charging, rating, billing, product catalog, policy management, and customer care for any digital services of a CSP. Its solutions include Optiva Charging Engine, a convergent charging solution that helps CSPs to monetize platform; Optiva Business Support System Platform, an end-to-end cloud native converged charging and billing solutions on the private and public cloud; Policy Control, a data monetization for real-time applications, such as video streaming, interactive gaming, and voice over LTE; and Optiva Wholesale Billing, a cloud-based solution that provides converged settlement and accurate interconnect billing. The company also offers Optiva Payment solutions that include various payment methods, including voucher and voucher less payment and top-up solutions. The company was founded in 1999 and is headquartered in Mississauga, Canada.

How the Company Makes Money

Optiva Inc generates revenue primarily through the sale of its cloud-native software solutions and services to telecommunications companies worldwide. The key revenue streams include software licensing fees, subscription-based models for its cloud services, and ongoing support and maintenance contracts. Additionally, the company may engage in significant partnerships with telecom operators to customize its solutions to specific market needs, driving further revenue. Optiva's focus on innovation and cloud technology adoption plays a crucial role in attracting clients and sustaining its revenue growth.

Optiva Inc Financial Statement Overview

Summary

Optiva Inc is facing significant financial challenges, with declining revenues and substantial net losses. The negative stockholders' equity and high leverage raise concerns about financial stability. Despite positive operating cash flow, overall cash generation is weak, indicating the need for improved operational efficiency.

Income Statement

Optiva Inc has experienced declining revenues and profitability over recent periods. The TTM revenue decreased from the previous year, and the company recorded a negative net profit margin of -40.3% in TTM, indicating significant losses. Gross profit margin stands at 58.9% for TTM, reflecting reasonable cost control. However, negative EBIT and EBITDA margins highlight operational inefficiencies.

Balance Sheet

The balance sheet shows financial instability with negative stockholders' equity, indicating potential solvency issues. The debt-to-equity ratio is not calculable due to negative equity, but the high total debt levels relative to assets suggest substantial leverage. The equity ratio is negative, underscoring financial distress.

Cash Flow

Cash flow shows some improvement with positive operating cash flow in TTM, although free cash flow growth is volatile. The operating cash flow to net income ratio is positive, indicating better cash management compared to net losses. However, free cash flow remains low relative to net income.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
47.11M	47.51M	61.78M	65.24M	75.92M	96.71M
	Gross Profit
27.75M	30.61M	44.59M	50.36M	56.31M	65.22M
	EBIT
-7.80M	-1.26M	11.56M	30.53M	-7.24M	8.99M
	EBITDA
-7.09M	-162.00K	13.51M	16.58M	-22.32M	12.00M
	Net Income Common Stockholders
-19.00M	-12.26M	709.00K	18.50M	-41.52M	-11.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.24M	19.64M	18.39M	29.59M	17.66M	31.75M
	Total Assets
76.88M	84.31M	86.62M	92.66M	77.38M	101.52M
	Total Debt
101.67M	101.35M	87.72M	86.99M	86.34M	66.35M
	Net Debt
90.43M	81.71M	69.33M	57.40M	68.67M	34.60M
	Total Liabilities
122.15M	123.60M	112.70M	127.72M	156.81M	137.14M
	Stockholders Equity
-45.27M	-39.29M	-26.08M	-35.06M	-79.43M	-35.62M
Cash Flow		Free Cash Flow
1.11M	-3.64M	-1.09M	1.59M	-7.90M	-1.81M
	Operating Cash Flow
1.64M	-3.25M	-237.00K	2.65M	-7.90M	-1.81M
	Investing Cash Flow
-307.00K	760.00K	-2.01M	-1.22M	325.60K	2.10M
	Financing Cash Flow
-10.10M	3.95M	-8.78M	10.89M	-7.52M	-3.41M

Optiva Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:OPT, the sentiment is Negative. The current price of 0.67 is below the 20-day moving average (MA) of 0.80, below the 50-day MA of 1.32, and below the 200-day MA of 3.32, indicating a bearish trend. The MACD of -0.23 indicates Negative momentum. The RSI at 29.66 is Positive, neither overbought nor oversold. The STOCH value of 84.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:OPT.

Optiva Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$11.70B	10.39	-7.10%	2.92%	7.45%	-8.42%
EONX	48 Neutral	C$7.99M	―	20.16%	―	79.84%	70.95%
OPT	45 Neutral	C$4.16M	―	36.35%	―	4.13%	-5.54%
NBVA	45 Neutral	C$5.26M	160.00	0.79%	―	-74.44%	―
PKK	36 Underperform	C$5.57M	―	-224.98%	―	-85.42%	51.62%
VENZF		$3.67M	―	-330.27%	―	―	―
FOBIF		$6.55M	―		―	―	―

Optiva Inc Corporate Events

Optiva Inc. Wins MVNOs World AI & Analytics Excellence Award for AI-Driven BSS Platform

Optiva Inc. has been awarded the MVNOs World AI & Analytics Excellence Award for its AI-driven BSS platform, which is powered by Google’s Gemini Models. The platform is recognized for empowering MVNEs and MVNOs to launch and configure eSIM enablement and advanced product catalogs swiftly. This award highlights Optiva’s innovative partnerships and its role in enhancing agility, scalability, and customer-centric offerings in the competitive telecom market. The platform’s AI capabilities, such as churn prediction and dynamic pricing, allow operators to accelerate time-to-market and optimize growth strategies, ultimately improving customer experience and operational efficiency.

Optiva Unveils Dynamic Pricing Solution to Revolutionize Telecom Monetization

Optiva Inc., in collaboration with PlektonLabs and Qeema, announced the INFINITY project, which will be showcased at DTW25 Ignite. This project introduces a dynamic pricing solution that allows telecom operators to adapt pricing in real-time based on network utilization and customer demand, thereby unlocking new revenue streams and optimizing network capacity. By leveraging APIs and AI-driven tools, INFINITY aims to transform telecom monetization, enabling operators to move beyond static pricing models and capitalize on advanced network features. This initiative is expected to enhance operators’ ability to meet evolving customer expectations and improve profitability.

Optiva Inc. Announces Q1 2025 Financial Results and Strategic Initiatives

Optiva Inc. reported its first quarter 2025 financial results, highlighting a revenue of $11.6 million and a gross margin of 64%. The company secured $6.3 million in total contract value bookings and introduced agentic AI technology, powered by Google’s Gemini models, into its BSS and charging solutions. This integration aims to improve operational efficiency and customer experience, earning industry recognition. Optiva is also navigating strategic alternatives concerning its outstanding Secured Notes, with key stakeholders committed to supporting the company through this process.

Optiva Inc. Achieves Key Business Milestones Amid Financial Losses in Q4 2024

Optiva Inc. reported its fourth quarter 2024 financial results, highlighting a revenue of $12 million and a gross margin of 59%. Despite an adjusted EBITDA loss of $1.8 million, the company achieved significant business objectives, including customer retention and increased bookings. Optiva’s cloud-native solutions and AI integration have attracted new and existing customers, leading to successful upgrades and partnerships. The company is exploring strategic alternatives to optimize business outcomes, with a focus on refinancing options for its PIK Toggle Notes maturing in July 2025.